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The long-run total cost function for a firm producing skateboards is
TC = q^3 − 30(q^2) + 350q
a. Calculate the average cost function for skateboards. What shape does the graph of this function have?
b. At what level of skateboard output does average cost reach a minimum? What is the average cost at this level of output?
c. Calculate the marginal cost function. What is marginal cost at the output level in part b?
d. Graph the average and marginal cost curves.